MODULE I READINGS: DECENTRALIZED GOVERNANCE: CONCEPTUAL FRAMEWORK THEME.1: CENTRALIZED AND DECENTRALIZED GOVERNANCE NEXUS

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1 MODULE I READINGS: DECENTRALIZED GOVERNANCE: CONCEPTUAL FRAMEWORK THEME.1: CENTRALIZED AND DECENTRALIZED GOVERNANCE NEXUS The central government remains an essential part of the process. For the purpose of this exposition the central government will be designated as the Center. Likewise, decentralized local governments will be called the Periphery. Decentralized governance involves the transfer of specific functions and responsibilities from the Center (e.g.central government) to the Periphery (e.g. local governments, local entities), and these must be matched by an adequate level of resources to facilitate the implementation of these functions at the local level. At the Periphery, the chances of success and sustainability of the decentralized governance are enhanced when visible action such as a more efficient and reliable service delivery is undertaken, with active participation of local populations engaged at all stages of the decision-making process. The Center s objectives include maintaining national unity and indivisibility, promotion of national interests, coordination of the development process, and striving for equity across all parts of the nation. The Periphery s objectives include respecting local diversity, establishing local autonomy taking into account local interests, applying local social and managerial systems, and promoting local development. While these goals may seem contradictory, they need not to be if a sound process of integration and coordination is put in place between the Center and the Periphery, through feedback mechanisms whereby each level of government contributes for the adjustment of the needs and priorities of the other. Decentralized Governance implies that each level of government (National and subnational) has specific roles and responsibilities assigned to it through a political, constitutional, legal and institutional reform process, with matching revenue mobilization authority to facilitate an efficient implementation of those responsibilities. In such a system, centralized governance and decentralized governance must be integrated and coordinated within the same socio-economic and political standards norms and principles. The policy choices, strategies, and mechanisms by which a government strives to achieve local community-led development constitute the elements of decentralized governance. Decentralized governance promotes transparency, accountability, community empowerment and local economic development as a strategy of poverty reduction. Decentralized governance is only as good as the political will of those in power. Empowerment of citizens for a full participation in all aspects of the decision-making process creates the conditions for a more effective and successful decentralization process. An approach, based on strong partnerships with civil society, community-based organizations and the international community also enhances the chances of the success of a decentralization program.

2 THEME.2: CONCEPTS Decentralization Decentralization is a political process which involves the devolution of power and authority. Decentralization creates the conditions for a more competitive distribution of resources and therefore more efficient utilization of those resources; it makes more likely that the average citizen will feel that his/her voice is being heard, and that his/her preferences are taken into account in the decision-making process. As pointed out by Mayeh Omar (1989) Decentralization is the transfer of authority and responsibility for planning, management, and resource-raising and allocation from the central government to (a) field units of central government ministries or agencies; (b) subordinate units or levels of government; (c) semi-autonomous public authorities or corporations; (d) area-wide regional or functional authorities; or (e) NGO s/pvo s. (Cf. Rondinelli and Cheema ). Decentralization is a generic term which covers a number of modes such as the following: (i) deconcentration which refers to the process of administrative decentralization whereby the central government designs a structure that enables its agents to work close to the local people in field units / agencies of central government, (ii) delegation which is the transfer of responsibilities from central government to semiautonomous bodies that are directly accountable to the central government, (iii) devolution which is the process of transferring decision-making and implementation powers, functions, responsibilities and resources to legally constituted local governments, (iv) delocalization which is the spatial distribution of central government socio-economic development facilities and activities such as schools, hospitals, etc in peripheral regions. Discussion on these terms can be found in: Gay Braibant: Institutions Administratives Comparées: Les Contrôles (Fondation nationale des Sciences politiques, Services de Polycopies, Paris, pages 89 93) and in Jacques Chevallier, Science Administrative (Presse universitaire de France, Paris, 1986, pages ). See also Charles Debbasch, Science Administrative 5 th edition (Dalloz, Paris, 1989, pages ). A well-designed decentralization process must aim to empower the grassroots of the country through active participation of local populations in the political process, and by holding local and central authorities accountable. The process of decentralization involves the transfer (devolution) of functions, competencies, political decision-making powers, and financial and human resources to sub-national levels of government or semi-autonomous entities. A decentralization process can follow two operation modes where one is vertical and the other one horizontal. Vertical decentralization mode focuses on transfer of powers and responsibilities in specific areas as officially agreed from the central government to local governments or any local authorities. 2

3 Horizontal decentralization mode refers to the expansion of the real operational transfer in the field at local level. It stresses on how the transfer is spreading out through each area or towards local governments or local authorities taking into account some considerations like technology capacity in place, availability of skilled human resources to address some issues, security and safety of the environment, etc. To be successful a country must embark in an irreversible democratic process as a conduit for the application of decentralization policy. A decentralization policy must be designed within a legal and constitutional reform framework that clearly defines the functions and responsibilities devolved to the local level and those retained at the central level. This establishes an institutional enabling environment for the implementation of decentralization policies. The institutional reform implementation must be continually coordinated, monitored and evaluated. A strong dynamic open and facilitating central government, as well as a competent, decisive, and efficient civil service, constitutes the necessary ingredients of a successful decentralization. A decentralization policy goal is not only to practice efficiently the provision of services at the local level, but also to contribute for sustainable development, economic growth and reduction of poverty. Indeed, sustainable development implies efficient management of resources and the environment, and the creation of a dynamic economic growth process, all based upon a partnership between the public sector, the private sector and civil society as well as international community actors. It requires effective participation and ownership by local communities. This is best achieved if local authorities and policy implementers adopt a code of conduct based on a set of ethics and values that are conducive to building trust between them and the communities. Thus, local management of the decentralization process must be carried out in a total transparency based on accurate management systems and referential documents. In addition, local authorities must be accountable to the populations they serve. Administrative decentralization Administrative decentralization aims to transfer responsibility for the planning, financing, and management of selected public functions from the central government to local administrative entities. Administrative decentralization can take the form of deconcentration, delegation or devolution. Deconcentration: Deconcentration is the fact that decision making authority is shifted from the central government to local levels while still reporting to the central government. Although financial and management responsibility may be shifted to the local units, there remains the hierarchical linkage of the local authority to the central power. 3

4 Delegation: Responsibility for decision-making transferred with respect to public functions. Delegation remains a functional act of transfer which can be exercised either in centralized governance or in decentralized one. The difference between delegation and full political decentralization is that the lower level organizations to which power is transferred remain ultimately accountable to the central government. Devolution: Devolution is a foundation of political decentralization and it usually involves the transfer of full responsibilities to sub-national authorities. Delocalization: Delocalization refers to a spatial distribution of central government socio-economic development facilities and activities such as schools, hospitals, etc in peripheral regions Political decentralization Political decentralization consists of the creation of sub-national levels of government that are endowed with autonomous decision-making power within the framework of a multipartite, participatory, local democratic system. The sub-national entities (state, provincial, district governments, or municipalities) to which power is devolved in the course of political decentralization must be legitimately elected local governments, which have legal authority, conferred onto them by the people who elected them. They also enjoy financial autonomy. Decentralization Principles Decentralization is executed under the following principles: (i)national unity, indivisibility and even development; (ii)local autonomy, identity, interests, and diversity; (iii)separation of political administrative and technical authority; (iv)subsidiarity; (v)matching transferred responsibilities with transfer of financial, human, and material resources; (vi)accessibility and Proximity. THEME.3: A DECENTRALIZED GOVERNANCE CONCEPTUAL FRAMEWORK Decentralized governance conceptual framework can be illustrated as a dynamic and cyclic process outlining important phases with the agenda setting of decentralization as the starting point even though embarking in decentralization might originate from other influences. The other three critical phases are (i)the decentralization policy formulation, (ii)the implementation of decentralization policy, and (iii)the monitoring and evaluation phase to keep the momentum of the vitality of the decentralized governance system. (cf. figure). 4

5 THEME.4: MAJOR CHALLENGES OF DECENTRALIZED GOVERNANCE The conceptual framework should be in focus with the spatial distribution of central government socio-economic development facilities and services to be delivered in peripheral regions such as schools, hospitals, etc, for the implementation of decentralization. It should first and foremost be intertwined with what can be considered as the major challenges in decentralized governance : Will for Democracy and Decentralization Civil Society & Private Sector Transparency and Anti-Corruption Rule of law & Protection of Human Rights Participatory Development and Partnership Decentralized public Sector Reform Leadership Accountability and Decision-making Process Democracy and Citizenship: The process of decentralization is stronger and more effective when implemented within the context of a democratic process. Citizenship participation in the political process provides legitimacy to government action. Ownership of the process resides therefore with the populations, including the grassroots. Civil Society - Transparency and Anti-Corruption: A strong civil society activity enhances the chances of transparency in the decision-making process, as civil society adopts the role of watch-dog of government action, making it easier to fight corruption and mismanagement of public resources. Public Sector Institutions: Public sector reform must be carried out in order to create the conditions for a more effective policy implementation when a country engages in decentralization. Public officials, elected or non-elected, must assume new roles and new responsibilities at all levels of government in the context of decentralization. Institutions must be either reformed re-designed or created to become democratic and more appropriate for a responsive service delivery (infrastructure and housing, education and knowledge, health, food shelter and sanitation, transport, communication and information, supply of drinking water, electrification and public lighting, etc..). The appropriate types of training must be provided to central and local authorities so they may be able to perform their duties in the new policy environment. Thus, the training and capacity-building that needs to take place during the process of decentralization must focus on the understanding of the changing nature of the roles of public institutions at all levels of government. Some of the notions that must be engrained into each public actor include good governance, transparency, accountability, citizens participation, and the fight against corruption. 5

6 Human Rights and Rule of Law: Protection of human rights is consistent with a democratic process, and this in turn is the basic foundation of a decentralized governance mode of government. Rule of law, respect of local social diversity, good governance, and a strong and independent judicial system are necessary tools of protecting citizens human rights. Participatory Development and Partnership: When a democratic process is in place, with the proper checks and balances system, and appropriate institutions including management and information systems which guarantee and protect the human rights of the populations, then this creates opportunities for the people to exercise their rights to become stakeholders in their own development. This implies to generate in people a mindset where they feel at the same time leaders, actors and owners. Leadership Accountability and Decision Making Process: One of the big challenges in decentralized governance is to determine in which way to become a leader, actor or owner including how the decision making process will be. If the chosen way is to be the election mode, then this will become a very big challenge but just a step in a decentralization process. Social accountability will be defined as a demand-driven approach to be applied by elected or non-elected authorities and officials to meet the people expectations of getting accurate information from the responsibilities, authority, and resources devolved as well as rules and procedures to be in force. This relies on civic engagement where ordinary citizens and civil society organizations play a key role. Institutions mechanisms and tools to promote social accountability should be adequately designed, to make elected or non elected authorities, decision makers and officials, answerable on their decisions, actions and utilization of resources. Additional Reading 1. PowerPoint: UNDP Institutional Development Group: Democratic Governance Team 2. Work, Robertson Overview of Decentralisation Worldwide: A Stepping Stone to Improved Governance and Human Development. United Nations Development Programme United Nations Development Programme Fiscal Decentralisation and Poverty Reduction. United Nations. pp Pranab Bardhan, Decentralization of Governance and Development, Journal of Economic Perspectives, vol. 16, No. 14, Merilee S. Grindle, Good Enough Governance: Poverty Reduction and Reform in Developing Countries, Governance: An International Journal of Policy Administration and Institution, vol. 17, No. 4, Work, Robertson Overview of Decentralisation Worldwide: A Stepping Stone to Improved Governance and Human Development. United Nations Development Programme: 6